DEM: A Well-Balanced Income Play On Emerging Markets
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The Alpha Sieve4.74K FollowersFollow5ShareSavePlay(15min)CommentsSummaryThe WisdomTree Emerging Markets High Dividend ETF offers a diversified, fundamentally screened portfolio of ~500 high-yielding EM stocks with a 4.27% yield.DEM stands out for its relatively lower volatility, reduced concentration in China/India and the tech sector, and deep value metrics — trading at less than10x earnings and 5.6x cash flow.Portfolio construction emphasizes quality and momentum, capping individual stock weights at 5%, preventing top-heaviness.DEM is not the most cost-efficient product in this landscape, as it suffers from high turnover, currency/geopolitical exposure, and offers inconsistent dividend growth.We also compare DEM to two alternatives from this space. tum3123/iStock via Getty Images Introduction To The WisdomTree Emerging Markets High Dividend ETF The WisdomTree Emerging Markets High Dividend Fund ETF (DEM) is a $3.3B-sized (by asset under management) ETF that has been around since July 2007. DEM, which is issued by the asset management company- WisdomTree (noted for craftingThis article was written byThe Alpha Sieve4.74K FollowersFollowInvestment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Latin America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.